Investor Trip November 2008 Day 1 Operations Services Day 1 - - PowerPoint PPT Presentation

Investor Trip November 2008

Day 1 Operations Services

Day 1 – Tuesday, 25 November 2008 Welcome Keith Roberts, chief financial officer

Agenda – Tuesday, 25 November 2008

1300 Arrivals at Dubai Petroleum (lunch) 1350 Welcome Keith Roberts 1400 Tour of training facility Joe O’ Kane 1445 Update on Petrofac Training Joe O’ Kane 1515 Overall PFM introduction Gordon East Update on developments at Dubai Petroleum Peter Leach 1600 Coffee Break

Agenda – Tuesday, 25 November 2008

1615 Facilities Management introduction/ update Robin Watson 1630 Brownfield update Bill Bayliss 1645 Caltec/ Eclipse – Production Enhancement Gordon East 1715 Questions and answers All 1745 Recap of Day 1, outline of Day 2 & Close Keith Roberts 1800 Depart Dubai Petroleum

Day 1 participants - Petrofac

Keith Roberts Chief financial officer Joe O’ Kane Regional manager Petrofac Training Russia, Central and S

• uthern Asia

Gordon East Managing director Petrofac Facilities Management Peter Leach Operations manager Dubai Petroleum Robin Watson Director, operations management Petrofac Facilities Management Bill Bayliss VP, Brownfield Petrofac Facilities Management

Day 1 participants - analysts

Mark Breslin McCall Aitken McKenzie Alex Brooks UBS Alej andro Demichelis Merrill Lynch Andrew Dobbing JP Morgan Cazenove Emmanuel Gautrot Adia Malcolm Graham Wood HansonWesthouse Peter Hitchens Kaupthing Craig Howie Blue Oar Peter Hutton NCB Catherine Leveau Natixis S ecurities Iain Macarthur Arbuthnot Christyan Malek Deutsche Bank Keith Morris Evolution S ecurities Iqbal Nasim Nomura Jan Pstrokonski S immons & Company Martij n Rats Morgan S tanley Colin S mith Dresdner Kleinwort Ben S now Arden Partners Katherine Tonks Credit S uisse Andrew Whittock Oriel S ecurities

Location of fire exits & muster point

Tour of training facility Joe O’ Kane – Regional manager, Russia, Cent ral and S

• uthern Asia, Petrofac Training

Karim Osseiran – corporate proj ects manager, Petrofac Training

Update on Petrofac Training Joe O’ Kane – Regional manager, Russia, Central and S

• uthern Asia

Petrofac Training

Petrofac Training

A leading provider of training and consultancy solutions to the international oil & gas industry Reputation stems from close to 30 years of experience in providing leading and innovative training solutions to meet industry needs Extensive portfolio covering safety, emergency response & crisis management, operations, technical training, and consultancy Five operating regions Four hundred highly experienced and competent personnel More than 40,000 delegates trained annually

Training centres – 2008 developments update

UK, Scotland – Altens, Aberdeen; Montrose; Marine, Aberdeen and Dundee; Emergency Response S ervice Centre (ERS C), Aberdeen Azerbaijan – Baku S afety Training Facility, Baku; Caspian Technical Training Centre (CTTC), S angachal Terminal UAE - Dubai Petroleum Training Centre (DPTC) Singapore, Jurong Island – Chemical Process Technology Centre (CPTC) Sakhalin Island – Sakhalin Technical Training Centre (S TTC) Malaysia, Kuala Lumpur – Maj or Emergency Management (MEM) S uite Americas – Houston Training Centre, Houston; Trinidad Training Centre, MS TC, Lafayette; S hell Robert, Louisiana

Baku Training Centre

Baku Training Centre

New safety training facility launched in 2008 Opened in response to increased demand for safety training services Extensive facilities include:

–

Mobile confined space training unit

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Internal facilities for LOLER training

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CBT suite

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Rigging frame

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Forklift

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S caffolding tower

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Abrasive wheels facility

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Twenty five-ton crane for Banksman training

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Maj or emergency management simulator

–

S ix classrooms

Dubai Petroleum Training Centre

Dubai Petroleum Training Centre

Located at Dubai Petroleum site in Dubai Managed and operated by Petrofac Training under a five-year Training Management Agreement (TMA) with the Government of Dubai Offers comprehensive safety and technical training

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Practical training area of approximately 1,500 square metres

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Mobile helicopter underwater escape training unit

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Mobile confined space training unit

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Rigging & lifting frame

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S caffolding area

–

Four fully equipped classrooms

Chemical Process Technology Centre

Chemical Process Technology Centre

Located on Jurong Island, S ingapore Managed and operated by Petrofac Training under a five-year Training Management Agreement with the S ingapore Economic Development Board Extensive facilities include

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Live hydrocarbon processing plant

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S pecialist equipment laboratories

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Classrooms, CBT suite, 200-seat auditorium

Training available at the centre includes

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Operations and technical

–

Health & safety

–

Critical incident management

–

Competence assurance management

Workforce Development Agency

S akhalin Technical Training Centre

S akhalin Technical Training Centre

Located on S akhalin Island, Russia Expanded centre launched in June 2008 to meet an increased demand for competent workforces in S akhalin Operated by Petrofac Training’ s technical training business, PKT Can deliver health & safety, emergency response training, fire training and technical training Customers include Exxon Neftegas Limited (ENL) and S akhalin Energy Investment Company Limited (S EIC) Training is delivered to standards of competence required by Russian Federation of Mandatory and Vocational Training

Houston Training Centre

Houston Training Centre

Located in Houston, Texas Launched in May 2008, facility is equipped to meet emergency response and health & safety training needs Contains state-of-the-art Maj or Emergency Management simulator Training available includes:

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Health & safety

–

Critical Incident Management Training (CIMT)

–

Management development training

–

“ S

• ft skills”

Maj or Emergency Management S imulator

Maj or Emergency Management S imulator

Fourth Maj or Emergency Management S imulator in the UK opened Located at Altens Training Centre in Aberdeen Built in response to increased demand for Maj or Emergency Management courses and assessments for offshore installation managers (OIMs) and control room operators (CROs) Modern facility using industry leading digital recording technology to assist with delegate feedback, and record evidence of competence Will be accredited to provide formal assessment of OIMs and CROs to OPITO standards

Emergency Response S ervice Centre (ERS C)

Emergency Response S ervice Centre (ERS C)

Pioneering centre provides a complete emergency response solution for a number of operators in the UKCS Currently provide service to over 20 operators in the UKCS S ix new customers have been added during 2008 Twelve members of staff offer 24 hour 365 day readiness Responded to 125 incidents during 2008 Full response team called out on six occasions in 2008

Key Contracts and Alliances

Harweel Training Management S

• lutions

BP Operating Essentials and Assessors Global Alliances

Harweel

Appointed to design and deliver a competence-led technical training solution, build on Petrofac Engineering and Construction relationship with PDO Training programme was developed to take account of specific site requirements Petrofac Training facilities in the UK and the CPTC were utilised as part of the training programme Groups of graduates and experienced delegates completed tailored programmes Delegates achieved levels of operational competency for early stages of commissioning through into operations

Training Management S

• lutions (TMS

)

One-year contract extension to provide a key European exploration and production company with an outsourced training management solution

–

S ervice covers training management in the UK, Norway and The Netherlands

–

The initial contract has led to a nine-year relationship following three contract extensions

New contract to extend existing cust omer’ s TMS to their operations in Ireland S everal extensions and new contracts with operators and services companies in the UKCS

BP Operating Essentials and Assessors

Petrofac Training awarded contract to provide technical work stream for BP Operation Essentials (OE) programme Global delivery of training at BP sites Training will take place over an extended period of time Awarded contract for worldwide provision of BP global assessors

Global Alliances

Atlas Interactive, Aberdeen based e-learning company

–

Enables Petrofac Training to deliver generic and customised e-learning courses worldwide

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Provides a highly compelling learning proposition for current and future customers

Pisys, Aberdeen-based software company

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Provide multi-purpose training simulators that are in use world-wide

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Enables Petrofac Training to improve Maj or Emergency Management training globally

Business Lab

–

Agreement to use their Corporat e Learning S ignature product

–

Provides a mechanism that interactively gathers and visually displays companies key learning capacity strengths and barriers

Overall PFM introduction and update on developments at Dubai Petroleum Gordon East, managing director Peter Leach, operations manager

Location

Field location map

Dubai Petroleum timeline

Discovery and development Discovery – 1966 First Oil

• 1970 (Fateh Field)

Production S haring Contract with Dubai Government

–

Conoco Operator

–

Partners - Wintershall, Repsol, Total, RWE Peak production rates – late 80s Proj ected field life 2018-2035+ Transition timeline 2005 – Petrofac due diligence 2006

–

Dubai Petroleum Establishment DPE created by Royal Decree

–

Field Management Agreement (FMA) signed between DPE and Petrofac October 2006 - transition starts 2 April 2007 - field operational handover

Asset Overview

Fateh SW Fateh NUI Falah

Asset scale

Fifty miles offshore Dubai 120 – 190-feet water depth Assets Eighty-five j ackets 407 wells Fifty-two gas turbines

–

• ne Bcf/ d gas compression

500 miles pipelines Three Khazzan storage tanks One floating storage tanker Three j ack-up drilling rigs One mobile work platform Personnel – 600 on board Logistics

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13-vessel marine fleet, four helicopters Average asset age > 25 years up to 38 years

S torage and Offloading

Khazzan Al Wasel FSO

In-field storage and export Three Khazzans One floating storage unit “ Al Wasel“

–

Maj or refurbishment during 2007 transition

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Technically challenging dry dock refit

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Petrofac Brownfield Proj ect

Dubai Petroleum transition highlights

2 April 2007 – a successful transition

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No accidents/ incidents

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Production levels maintained

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Integrity and operational continuity preserved

Key 2007 focus areas

–

S afety

– Preservation of strong culture –

Production

– Maintenance – Production enhancement “ arresting the base decline” –

Integrity

– Laying the foundations for 2008

2007 – nine months of consolidation

S afety

–

No maj or incidents or accidents, overall safety performance improved

Production

–

2007 production target delivered for 2007

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Material reduction in base well decline achieved

Commercial

–

First phase of incentivised performance delivered against 12 key performance indicators

– Focused on production, cost and safety

2007 – nine months of consolidation (cont)

Maj or Innovations

–

Gas turbine overhauls and upgrades

–

Development drilling programme established

– Two j ack-up drilling rigs active – eight wells drilled – Third high-performance rig contracted – Hydraulic workover unit drilling – Fast-track Rashid Asmari gas proj ect – Delivered five months from start to first gas –

Al Wasel FS U refurbishment and reinstallation

–

Marine fleet upgrades

– Modernisation of marine fleet

Development drilling units 2007

Noble Mark Burns Noble Roy Rhodes Hydraulic Workover Unit

2008 – a year of transformation and acceleration

S afety

–

Helicopter incident in S eptember 2008

Operations

–

S ignificant reorganisation, focused on

– Adapting to client drivers and requirements – Turbo machinery – specialist group (Plant Asset Management

International)

– Production efficiency and integrity –

Increased non-rig well intervention – three to eight units

Development drilling programme

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Three j ack-up drilling rigs – 20-plus wells drilled and worked over

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Hydraulic workover unit – two wells

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Mobile well intervention platform

2008 – a year of transformation and acceleration

Integrity

–

Development of integrity management system

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Baseline data acquisition – pipelines, j ackets, vessels

Proj ects

–

S WF Asmari Gas proj ect - two wells drilled and facilities installed

–

Falah B platform upgrades/ new Fateh in-field water inj ection pipelines

Commercial

–

KPI drivers reduced to five and simplified and realigned to transformation phase

Innovations

Operations

–

Gas turbine upgrades and efficiencies

–

Production performance management focus

– Loss management and optimisation

Drilling/ wells

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Rotary steerable assemblies

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New mud systems/ slot recovery on old platforms

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ES P installations

Integrity

–

Risk base inspection

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Pipeline intelligent pigging programme

Proj ect

–

Offshore gas management opportunities

2008 field development

Maersk Resilient Kawawa Work Platform

2009 - the way ahead

Asset drivers

–

Economic climat e

–

Integrity maintenance

–

Organisation and contract evolution

Asset opportunities

–

Debottlenecking technologies

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Near-field exploration

–

Organisational development

–

Cost focus

Future development options

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Conventional reserves

–

Enhanced oil recovery – CO2 inj ection

Coffee Break

Facilities management update Robin Watson, director, operations management

S

• me 17 Assets are

under Petrofac care Interoil PNG Refinery Northern Producer Galley Field Montrose & Arbroath Kittiwake Heather & Thistle Dubai Petroleum 1997 2003 2005 2007 Bacton & Hewett 2008 Chergui Northern Producer Banff

Facilities Management

Eleven years as Duty Holder in the UKCS Nine current operational safety cases, plus one Control of Maj or Accident Hazards (COMAH) OPITO-accredited competency programme S ixteen maj or transitions since 1997 S eventeen assets under Petrofac management More than 150 trainees and 20 graduate engineers Fully accredited graduate engineer training programme (IMechE) Contract and supply chain management of more than 600 contracts Investment in process and systems throughout 2008

Continued differentiation through 2008

2008 successes – Northern Producer

Northern Producer (NP): history

– Northern Producer is a converted semi-submersible drilling rig, built in

1974

– Petrofac was Duty Holder and facilities manager for the vessel from

1997 to 2007 on the Galley field

– Galley cessation of production and decommissioning programme

managed by Petrofac

Northern Producer: Don assets

– March 2008; Northern Producer contracted as the Don field floating

production facility

– Petrofac awarded contract to manage the life extension programme

within yard

– Recruitment of crew (60%

• plus of Galley crew returned to NP)

– Management systems implementation

2008 successes – Northern Producer - before

2008 successes – Northern Producer - after

Before

After

Petrofac, through Energy Developments, operates and has a 45% interest in the Chergui Concession; ETAP, the national petroleum company holds the balance Located approximately 200km south of Tunis, Tunisia; the central processing facility and current wells are located onshore on Kerkennah Islands

2008 successes – Chergui gas plant

Chergui parameters

–

Discovered by BG in 1992

–

First commercial gas August 2008 (reserves of 70 BCF)

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US $110mm total proj ect investment

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Initial Rate of 17.5 to 20mmscf/ d

–

Ongoing equipment commissioning

2008 successes – The Chergui gas plant

Operations Management engaged in the pre-operational, commissioning and ongoing management of the operation

–

Pre-operational activities

– Pre-operations plan – Resource histogram – Budget –

Operations Management

– RACI definition (responsible, accountable, consulted, informed) – Resource allocation – S

ystems support

2008 successes – Chergui gas plant

Extension of Kittiwake Facilities Management Agreement (FMA) for further two years Delivery of Northern Producer to site Delivery of fully commissioned, fully staffed Chergui gas plant Continued differentiation of our service offering in the market S ystems consolidation

–

Cross-asset implementation of the Asset Integrity Management S ystem (AIMS )

–

Investment in and implementation of the Petrofac Operations Management S ystem (POMS )

2008 successes – Operations Management

Petrofac Brownfield update Bill Bayliss, VP Brownfield

What we focus on

Construction/Commissioning/ De-commissioning Major Modifications Repair Orders/ Minor Modifications Removal of Existing Plant FEED/Detail Design Shutdown Management/ Co-ordination Conceptual Project Management

Continued growth focus for 2009

Algeria Oman Bioko Island Aberdeen Stavanger Woking Egypt Tunisia Qatar Abu Dhabi Norway Dubai Romania Gabon

HS EQ/ new technology

HSEQ Three years without an LTI for over 6.5 million exposed man hours Quality improvement plan – key items for implementation in progress New Technology Datawright/ Mpower integration proj ect – commenced roll-out on Lundin contract WIPDMS – Phase 1 of system configuration complete – roll-out to commence end of October 2008 on Venture; 5% reduction in norms by January 2009

PB HSE Performance 0.00 0.10 0.20 0.30 0.40 0.50 0.60 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Indicators/ 200 000 M/ Hours 50000 100000 150000 200000 250000 300000 Monthly Exposure Manhours Manhours OVERALL LTIF OVERALL RIFR

General

General Opened Abu Dhabi office August 2008 Opened Norway office June 2008 S upported by Chennai office 400 people onshore, 200 people offshore Negotiations (ongoing) Venture contract - expires end 2008 Lundin contract - expires end Q1 2009

Oxy Jarn Yaphour

S ales and marketing

Recent awards ADCO NEB consultancy Marathon Power Generation proj ect Oxy Jarn Yaphour contract extended by one year to align with new MOU signed by ADNOC Marathon EG LNG – four new studies CNR shutdown activities

ADCO Plant Marathon Power Generation Project 3D Drawing Petrofac Shutdown Team

• n Murchison, CNR

Marathon EG LNG

S ales and marketing

Key tenders (submitted/in progress) ADMA OPCO ZCS C – de-mothballing ZADCO GTP ZADCO – water inj ection S tatoil Hydro – various studies

Zakum Field ZADCO GTP StatoilHydro Kvitebjørn Field Norway

Caltec/ Eclipse Production Enhancement Gordon East, managing director

Eclipse

Acquisition of Eclipse, specialist production engineering company Life-of-field services including:

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Field development

–

Production modelling and optimisation

–

Well life cycle risk management

–

Petroleum engineering functional consulting

Eclipse

Acquired for initial consideration of £7 million Fifty employees Five offices worldwide: Aberdeen, London, S tavanger, Houston, Dubai Customers include

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BG Group

–

BHP Billiton

–

Nexen

–

S hell

–

Petro-Canada

Caltec

Acquisition of production technology specialist, Caltec Products aimed at enhancement of production from mature fields Wellcom system, boosting production flowrates by lowering wellhead pressures I-S EP system which allows the partial separation of gas, oil, water and solids

I-SEP compact separation technologies Production boosting using jet pump technology

Caltec

Acquired for initial consideration of £15 million Eighteen employees Based in Cranfield, UK and office in Aberdeen Innovation production solutions throughout Europe, GoM, North America, FS U, Middle East, S

• uth East Asia

and Africa

Customers

Caltec has developed relationships with blue chip customers

– BP – mainly North S

ea, exclusive review of all potential North S ea field applications

– S

hell – Nigeria, seen by S hell as their ‘ standard world class facilities of the future’ , 70 identified opportunities. Pilot plant procured

– S

tatoil – trials underway for new line in oil/ water separation, potential to retrofit Gullfaks operation at 200MBD second phase development

Capabilities

Production engineering Well construction and engineering Reservoir management Operations Asset integrity, management and performance Field development Technologies directly associated with production improvement

5 10 15 20 25 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

• riginal operator

new entrant cessation of production extended by commodity prices & prudent DH mgmt established entrant manpower supply integrated production

• ffering

duty holder / facilities mgmt

Further evolution… .

Integrated production offerings

Production performance improvement Leading-edge drilling and well engineering Reservoir management and field development Asset integrity management and performance Commercial innovation Focused technology development

Questions and answers

Recap of Day 1, Outline of Day 2 & Close